facebookBuying a condo soon and will wipe out CPF OA balance for downpayment. Should I pay for the monthly mortgage in cash only (build up my OA balance) should I use CPF for the monthly mortgage? - Seedly

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Rachel Lee

Rachel Lee

07 Jul 2022

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Property

Buying a condo soon and will wipe out CPF OA balance for downpayment. Should I pay for the monthly mortgage in cash only (build up my OA balance) should I use CPF for the monthly mortgage?

Discussion (1)

What are your thoughts?

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Opinon

  • Honestly, if your cpf OA is wipe out you probably over-leverage.

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  • Becoz u have no safety net without cpf. If u sudden lose of job, it will be very challenging to pay the monthly instalment, unless you have very thick bank account.

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Answering question

  • Personally i think, u should pay mostly by cash. Build up your CPF 1st.

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  • FYI: u can use mixture of cash and CPF to pay the instalment.

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  • Reason if u sudden loss of job then you can use CPF to pay. Playing with debt, you must make sure u have very strong holding power.

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My personal safety net for reference

  • Let tenant pay 1st
  • If no tenant, use my salary pay
  • If loss job, use my previous profit from selling the house (housing fund)
  • If "housing fund" deplete, then use cpf.

4 Layers of protection.

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